Gap Rally Has Legs

The clothing retailer's earnings forecast and same-store sales growth are anything but generic.

The Gap may bring to mind plain t-shirts and shelves of generic jeans, but the retailer is giving itself a fashion makeover, offering a diversity of brands and price points that are translating into stylish returns.

Shares of Gap (ticker: GPS) jumped nearly 6%, or $2.26, to $41.07 Friday afternoon after the company said...